Reprieve for Claimants of Failed Insurance Companies

By MWINGI TIMES CORRESPONDENT 

Through the Policyholders Compensation Fund (PCF), Government of Kenya steps in to bridge the gap by offering compensation.

“Currently, the maximum compensation amount available through the Fund is Sh. 500,000 per claim, as stipulated in Gazette Notice No. 971 dated January 23, 2026,” a press statement from the PCF said.

The Fund revealed that a total of KSh. 358.04 million had to date been disbursed as compensation to policyholders and claimants of insurers placed under statutory management or liquidation. According to the statement, 559 policyholders and claimants of Xplico Insurance Company Limited received the largest share of the payouts, amounting to KSh 125.1 million.

Additionally, the release added, 758 Kenyans benefited from KSh 92.12 million in compensation following the collapse of Resolution Insurance Company Limited.

PCF noted that the compensation is intended to provide financial relief to policyholders and claimants affected by the cancellation of licenses or the collapse of insurance companies.

The statement, issued by PCF Deputy Director for Corporate Communication, Rosemary Kavili, was shared with the media early in the week during the ongoing sensitization sessions on the Fund’s mandate.

Forums are taking place at the Kitui Multi-Purpose Training Centre as part of the PCF outreach initiative dubbed “PCF Mtaani.”

The release said PCF team plan to be in Kitui for five days conducting public awareness sessions.The forums target the media, boda boda riders, matatu operators, insurance agents, youth and women groups, cooperative societies, the business community, religious groups and public administrators. “The Policyholders’ Compensation Fund (PCF) has launched a robust public awareness campaign in Kitui County under the banner ‘PCF Mtaani,’ aimed at demystifying its role and promoting public trust in the insurance industry,” the statement said.

Kavili explained that the campaign is part of a nationwide initiative designed to inform, educate, and engage the public on how the Fund operates, with particular emphasis on its compensation mechanisms for policyholders affected by collapsed or troubled insurance firms. “Many affected individuals may still be unaware of their right to claim or how to go about it, and ‘PCF Mtaani’ seeks to bridge that gap,” the statement added.

She noted that the Kitui engagements are intended to educate the public on PCF’s role as a safety net for policyholders in the event of insurer failure.The sessions will also serve as platforms to encourage affected claimants to come forward and lodge their claims, while strengthening consumer confidence in the insurance industry.